Keltner Channels: So I knew about Bollinger Bands and how to use
them, but today I learned Keltner Channels are similar but use ATRs
rather than standard deviation. (Thanks for the pointer junkie!)
The middle line is an EMA of price, upper and lower lines are
usually twice the ATR. Got it.
So then extrapolating from this, I'll make some guesses:
a) The 4 cycles charts only ever show either the upper or
lower Keltner Channel band, whichever is farther from price.
b) The middle line (EMA) of the channel is never shown.
c) On the new KISS tables, the column "ATR Position"
indicates whether the price is above or below the middle line of
the implied Keltner Channel (neither of which are shown on the
chart).
Ok, please grade my paper someone. How did I do? :-)
Yes, they are called Keltner channels. The default setting is
1.5 ATR, while using 1, 2, and 3 ATRs is my preference (all three).
/NG is following the 3 ATR down, by the way.
The middle line is 20EMA, which is a major EMA. I use 21EMA,
which works a bit better and is a Fib number. Below 20 and 21 EMA
is bearish, above 21 EMA is bullish.
Usage is shown on the screenshot below. The middle line is
depicted as a dotted line.
So unless I hear otherwise, I'll just assume my guesses on
howthese Keltner Channels are used / implied in the KISS
tables and in the 4 cycles are correct.
Keltner Channels: So I knew
Noob questions on ATR use in KISS and cycles: On ...
Posted by zaphod on 1st of Feb 2023 at 07:00 pm
Keltner Channels: So I knew about Bollinger Bands and how to use them, but today I learned Keltner Channels are similar but use ATRs rather than standard deviation. (Thanks for the pointer junkie!)
The middle line is an EMA of price, upper and lower lines are usually twice the ATR. Got it.
So then extrapolating from this, I'll make some guesses:
a) The 4 cycles charts only ever show either the upper or lower Keltner Channel band, whichever is farther from price.
b) The middle line (EMA) of the channel is never shown.
c) On the new KISS tables, the column "ATR Position" indicates whether the price is above or below the middle line of the implied Keltner Channel (neither of which are shown on the chart).
Ok, please grade my paper someone. How did I do? :-)
(And thank you for your patience!)
Yes, they are called Keltner
Posted by junkie on 1st of Feb 2023 at 07:19 pm
Yes, they are called Keltner channels. The default setting is 1.5 ATR, while using 1, 2, and 3 ATRs is my preference (all three). /NG is following the 3 ATR down, by the way.
The middle line is 20EMA, which is a major EMA. I use 21EMA, which works a bit better and is a Fib number. Below 20 and 21 EMA is bearish, above 21 EMA is bullish.
Usage is shown on the screenshot below. The middle line is depicted as a dotted line.
Thanks junkie! Very helpful. So unless
Posted by zaphod on 2nd of Feb 2023 at 12:08 am
Thanks junkie! Very helpful.
So unless I hear otherwise, I'll just assume my guesses on howthese Keltner Channels are used / implied in the KISS tables and in the 4 cycles are correct.
Yes, correct. The same principle
Posted by junkie on 2nd of Feb 2023 at 12:31 am
Yes, correct. The same principle is used. A trailing stop is ratcheted up or down, while a moving average is a smooth line. That is the difference.